2_Title Slide

Superior Energy Performance® programCertifying Increased Energy Productivity under ISO 50001

December 8, 2015

Presentation to Council of Industrial Boiler Owners

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Ad hoc Approach to Energy Management

Source: UNIDO 2010

3

Senior management commit to program

Initial savings sustained

Low cost operational improvements first – then investment

Becomes company culture

Source: Kahlenborn et al. (2012), based on Lackner & Holanek (2007)

Structured Approach to Energy Management

4

Energy & cost savings over time

Elevates and integrates energy

into normal business systems,

as has happened for safety & quality

Involves staff from the board

room to the shop floor:

Organizational change in culture

Energy Management System (EnMS)

Project

approach

Systematic energy management

leads to continual improvements

in energy and cost performance

5

ISO 50001–Energy Management Systems (EnMS)

International standard that draws from best practices around the world.

Developed with input from 56 countries, many countries now adopting it as

a national standard.

ISO 50001 specifies

requirements for establishing,

implementing, maintaining

and improving an EnMS.

Light blue text represents new data-driven sections in

ISO 50001 that are not in ISO 9001 & ISO 14001

It does not prescribe

specific energy performance

improvement criteria.

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SEP is a DOE certification program that

verifies energy management excellence and

sustained energy savings.

SEP is ISO 50001 plus:

Deeper, sustained savings at less cost

through robust tracking and measurement

with advanced tools

Credible, third-party verification by ANSI-

ANAB accredited entity that market can

reward supply chains, utilities, and carbon

trading

National recognition by U.S. DOE

identifying sustainability leaders

iStock photo: 16418416

Superior Energy Performance® (SEPTM)

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Strategic Energy Management (SEM)

Continuum

Systematic approach

Operation of many utility SEM

programs at this level

Foundational Energy

Management(e.g., ENERGY STAR

For Buildings & Plants)

ISO 50001

SEP

Standard Energy

Management System

(EnMS) framework for

global operations

Verified

energy

performance

and ISO 50001

ISO standard for EnMS

Similar framework to ISO 9001 & ISO 14001

Third-party certification

Superior Energy Performance (SEP):

Rigorous third-party measurement and verification

Marginal effort beyond ISO 50001

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SEP Requirements

SEP certification requires industrial facilities and commercial buildings to

meet the ISO 50001 standard and improve energy performance.

Superior Energy Performance

Verified energy

performance

improvement

ISO 50001

certification

Silver

5% energy performance

improvement over

3 years

-or-

15% energy

performance

improvement over

10 years

+

30 Best Practice

Scorecard points

Gold

10% energy performance

improvement over

3 years

-or-

15% energy

performance

improvement over

10 years

+

61 Best Practice

Scorecard points

Platinum

15% energy performance

improvement over

3 years

-or-

15% energy

performance

improvement over

10 years

+

81 Best Practice

Scorecard points

SEP requirements are undergoing an update. See slides at the

end of this presentation for a preview of the updated program.

Shorter time frames than 3 or 10 years may be allowed, see M&V Protocol for details.

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SEP Certified Facilities and Verified Energy Performance Improvement

Brockville, Ontario Canada

21.4% over7 years

Cordova, IL 5.6%

Smyrna, TN 17.7%

Ontario, NY 16.5%

Whitakers, NC 12.6%

Dunedin, FL 12.2%

Scranton, PA 11.9%

Wilson, NC16.8% over

10 years

Gilroy, CA 9.8%

Gaithersburg, MD 8.5%

Cheswick, PA 7.6%

Carlisle, PA 5.7%

Saanichton, BC Canada 30.6%

Smyrna, TN 23.1%

Clovis, CA 16.7%

Seneca, SC 15.6%

Hopkins, SC 10.2%

Tijuana, Mexico 10.2%

Peru, IN24.9% over

10 years

Cedar Rapids, IA 8.8%

Lexington, KY 6.9%

Lincoln, NE 6.5%

Rojo Gomez, Mexico 5.9%

Mack Trucks, Macungie, PA41.9% over

10 years

Dublin, VA28.4% over

10 years

Hagerstown, MD 20.9% Last update

d: O

cto

ber

12, 2015

Improvement over 3 years unless stated otherwise

SEP Measurement & Verification Protocol provides robust methodology

to track and verify energy performance improvement.

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Savings: Cost-effective, deeper, credible

Deeper, more rapid savings at

less cost

2015 study of 10 SEP-certified

facilities

12% reduction in energy costs

within 15 months of starting to

implement SEP, on average

Saved over $430,000/year on

average from low/no cost

operational improvements

Credible, third-party verification

Valuable data and analysis for

higher confidence in energy

efficiency investments

Replicate results across company’s facility and buildings

nationally and internationally

Less than 2 year payback for facility with a

baseline annual energy spend greater than $1M

Less than 1.5 year payback for facility with a

baseline annual energy spend greater than $2M

y = 2.33x-0.61

R² = 0.65

0

1

2

3

4

5

6

7

8

$0 $5 $10 $15 $20 $25

SE

P P

ayb

ac

k P

eri

od

(ye

ars

)

Facility Baseline Annual Energy Spend ($ million)

Silver

Gold

Platinum

Payback:

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3.2% -Q4 to -Q1

BAU average

quarterly energy

savings percentage.

Post-First

SEP Training

Pre-First

SEP Training

7.4% +Q1 to +Q4

Average quarterly

energy savings

percentage.

4.2% attributable

to SEP.14.2% +Q5 to +Q7

Average quarterly

energy savings

percentage.

11.0% attributable

to SEP.

18%

15%

12%

6%

9%

3%

0%

Ave

rag

e Q

uart

erl

y E

nerg

y

Savin

g P

erc

en

tag

e

-Q4 -Q3 -Q2 -Q1 +Q1 +Q2 +Q3 +Q4 +Q5 +Q6 +Q7

Quarter

Verified Facility Wide Energy Savings

Attributable to SEP

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SEP Platinum Certified:

Smyrna, TN vehicle assembly plant

Sustained achievement:

2015 Recertified SEP Platinum

17.7% improvement in energy

performance over 3 years

6 week payback

2012 Certified SEP Silver

$938,000 total annual energy

savings; 7.2% improvement

over 3 years

4 month payback

Used DOE EnPI Tool to measure & track

improvements

Nissan: Smyrna, TN

“SEP adds rigor, analysis, and gives good

guidance. It’s one thing to have a target and

objective, but SEP gives tools that empower

you to be more disciplined and prove the

impact certain activities have.”

-Nissan North America Energy Team

See case study:

www.energy.gov/eere/amo/business-case-sep#case-studies

Recertified

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HARBEC Inc.: Ontario, NY

SEP Platinum Certified: Ontario, NY, facility

16.5% improvement in energy performance over

3 years

$52,000 in annual savings through operational

improvements with no capital investment

SEP is the organizing framework in driving the

company’s goal to be a carbon-neutral

company

Adopted a CHP system and two wind turbines

ISO 50001/SEP strengthens management

of this equipment, increasing the benefits

gained

“We are wary of statements of intent, but

third-party verification under SEP provides

evidence of proven energy savings. Without

verification, stated savings are just a nice

statement.”

- Bob Bechtold, President

HARBEC Inc. President, Bob Bechtold, and Energy

Team Amy Bechtold and Jeff Eisenhauer.

See case study:

www.energy.gov/eere/amo/business-case-sep#case-studies

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Land O’Lakes: Carlisle, PA

SEP Silver Certified: Carlisle, PA

facility

First dairy manufacturer to be SEP and

ISO 50001 certified

5.7% improvement in energy

performance over 3 years

DOE Better Plants Partner

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Tools and Resources for SEP

Accelerate SEP implementation with SEP tools and resources:

DOE eGuide: Use this comprehensive, step-

by-step online toolkit to implement ISO 50001

and SEP energy.gov/eguide

Guidance, resources for 3 levels, each with 5 core steps

Step 1: Engage Management

Step 2: Plan for Energy Management

Step 3: Implement Energy Management

Step 4: Measure and Check Results

Step 5: Review for Continual Improvement

Level 1

Foundational

Level 2

ISO 50001

Level 3

SEP

Energy Footprint Tool: Helps to establish a

basic understanding of the facility energy

consumption and use as well as the specific

application energy consumption.

https://ecenter.ee.doe.gov/EM/tools/Pages/

EnergyFootprint.aspx

( or Google “DOE energy footprint tool” )

EnPI Tool: Enter energy consumption data,

adjust for variables for a normalized view of

energy performance & calculate SEP metrics

energy.gov/enpi

Widely applicable: Industrial end users, commercial

end users, federal & state public facilities, university

campuses, utilities & program administrators

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SEP is building workforce capacity for energy management

implementation and measurement & verification.

Training and skill are required for appropriate application of the ISO 50001

and SEP standards, and to conduct the SEP certification audit.

Certified Practitioners in EnMS (CP EnMS):

Help facilities implement an ISO 50001

energy management system and prepare to

meet SEP requirements.

Find a CP EnMS:

http://ienmp.org/pro_search/index.php?action=1

Become a CP EnMS:

energy.gov/eere/amo/become-energy-management-

professional

Certified Professionals that Support SEP

SEP Lead Auditors:

Assess a facilities energy management

system conformance to ISO 50001 and

additional SEP requirements

SEP Performance Verifiers:

Assess a facility’s conformance to the

(1) measurement and verification

protocol and (2) SEP energy

performance improvement

requirements.

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SEP Expansion: Implementation across

multiple facilities to reduce costs

Companies are testing strategies to implement SEP across multiple facilities

and benefit from economies of scale.

ISO 50001 EnMS conformance sampled at facility level

eere.energy.gov/buildings/betterbuildings/accelerators/

Central office works with facility staff - reduce level of effort & auditing costs per facility

Central office and facilities

ISO 50001 certification audit

at enterprise-wide level

28 participating facilities from 5 companies:

3M Company

Cummins

General Dynamics

Nissan North America

Schneider Electric

Participating sites in

U.S., Canada, and

Mexico

SEP energy performance improvement verified at each facility

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SEP Expansion

Commercial building pilots

Hospitality sector

University campus

International

North American initiative

ISO 50001 Lead Auditor

Clean Energy Ministerial—

Energy Management Working

Group (EMWG)

Water/wastewater

Des Moines, IA (2)

Delta Diablo, CA

Ithaca, NY

Kent County, DE

Victor Valley, CA

Alexandria (VA) Renew

Enterprises

Federal

DOD contractors

DOE national labs

Organizations beyond industrial are using SEP to achieve energy and

savings goals.

Last updated: October 12, 2015

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• An initiative of the CEC in partnership with

– Natural Resources Canada

– Comisión Nacional para el Uso Eficiente

de la Energía

– US Department of Energy (USDOE)

Superior Energy Performance program.

• The CEC facilitates cooperation to foster the

conservation, protection, and enhancement

of the North American environment for the

benefit of present and future generations.

Website: www.cec.org

North American Energy Management Program

Commission for

Environmental

Cooperation

Canada, Mexico and the

United States created the

CEC in 1994 as part the

North American Agreement

on Environmental

Cooperation, a side

agreement to NAFTA.

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Elements of the Program

A collaborative initiative between the U.S., Canadian and Mexican governments, national standard bodies, industry, and cities will strive to:

1. establish an accreditation system for ISO 50001 auditors and SEP programs recognized throughout North America;

2. jointly develop tools and training to assist end users to adopt ISO 50001 and SEP across North America; and

3. demonstrate the benefits of ISO 50001 and SEP through pilot projects focused on the North American truck and bus supply chain, municipal facilities, and other segments of the commercial and industrial sector agreed to by participants.

Objective: Accelerate energy and cost savings and

reduce GHG emissions in industrial and commercial

sectors through energy management training to

implement ISO 50001 standards and Superior Energy

Performance (SEP).

The aim is to train 15 large companies with facilities

across North America.

North American Energy ManagementPilot Program

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Pilot Program Overview

Implement in priority sectors across North America

• 5-6 companies to be selected from each country

(10-15 facilities, maximum of 30 trainees)

• Three 2.5-day training sessions + coaching for one facility (Feb 2016 to

June 2017). See program description at www.cec.org/energy_program

• Cost-sharing:

– Companies: US$12,000 per company for up to three facilities in one

training location (program value US$30,000)

○ Training costs waived for any selected DOE Better Plants Partners

• Other costs borne by the company:

– Travel costs for trainees

– Implementation and certification costs

Disseminate success and exchange best practices

• Case studies for selected companies

• Peer learning networks

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Three 2-1/2-day workshops over 18 months: Training workshops to implement

ISO 50001 and meet criteria for Superior Energy Performance® and one-on-one

monthly company coaching provided by certified energy consultants to one facility.

1. PLAN: First workshop defines key elements of planning:

• Understand facility’s current energy management environment

• Develop energy policy and set organizational goals to adhere to it

• Establish a baseline of energy consumption

• Set performance indicators and review processes

2. DO: Second workshop focuses on successful tactical implementation:

• Use baselines to set targets and implement action plans

• Build energy awareness through the organization

• Advance energy management system competencies through training

3. CHECK/ACT: Third workshop measures your improvement curve:

• Use performance indicators to measure success

• Create corrective and preventive action processes

• Prioritize objectives

Resources Offered

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Assigned coaching teams

Each partner company will be assigned an experienced EnMS coaching team for

one of its facilities.

Monthly online training webinars and coaching calls

In addition to the three multi-day training workshops, training webinars and coaching

calls with each CEC Partner’s implementation

Implementation tools

Topic-specific ISO 50001 implementation tools and related resources will be

introduced in the face-to-face group training workshops for each phase and in the

monthly webinars.

Defined deliverables (including homework)

A Deliverables and Events Schedule will guide the team activities in each phase of

the EnMS implementation process.

Readiness Review

After the EnMS has been fully implemented and in operation for 30 to 60 days, an

experienced audit team will conduct a “Readiness Review” of the entire EnMS.

Resources Offered, Continued

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• Senior-level commitment to energy management and

energy performance improvement

• Experience with energy management systems

• Desire to pursue ISO 50001 or Superior Energy

Performance® certification

• Priority given to companies with facilities in all three

countries: Canada, Mexico, and United States

• Willingness to expand ISO 50001/SEP implementation

to other North American or global facilities

Selection Criteria for Partner Companies

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• Interested companies can apply online at

www.cec.org/energy_program until 8 January 2016.

• Interviews will be scheduled with eligible applicants to

explore their level of readiness and commitment and to

clarify training objectives and logistics.

• Selected applicants will be asked to sign a Partnership

Agreement and assign a team of energy management

personnel for the duration of the program.

Application Process

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Paul Scheihing

Technology Manager, Technical Assistance

Advanced Manufacturing Office

US Department of Energy

paul.scheihing@ee.doe.gov

1-202-586-7234

energy.gov/eere/amo

energy.gov/eere/amo/ta

Learn more:

energy.gov/isosep

Subscribe on the SEP website to receive

the latest SEP news & program updates:

Additional Slides

SEP Measurement & Verification

SEP energy performance is demonstrated by:

1. Top-down, whole facility SEP EnPI (“SEnPI”)

𝑆𝐸𝑛𝑃𝐼 = 𝐵𝑇𝑈𝑇𝑜𝑡 𝑎𝑐𝑡𝑢𝑎𝑙

𝐵𝑇𝑈𝑇𝑜𝑡 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑

29

Where BTUTot expected = f(X1, X2, … Xn)

2. Bottom-up sanity check Project-specific energy saving estimates based on engineering

calculations give confidence in top-down result

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DOE’s Better Plants

Corporate-wide

Recognition

Aspirational Focus:

Pledge to improve energy

performance by

25% in the next 10 years

Facility-level

Certification

Achievement Focus:

Energy performance improved

5% or more over past 3

years or 15% or more over

past 10 years

• Helps individual plants to accelerate energy

savings that contribute toward corporate goal

• Provides rigor of energy performance

measurement at the facility level

Better Plants

Helps SEP

Participants

• Provides structure for corporate-wide

energy efficiency goals

• Fosters replication of SEP at other

facilities

SEP Helps

Better Plants

Partners

Better Plants complements SEP

Superior Energy Performance